We currently trade in five products ranging from crude oil to fuel oil. In our bid to satisfy market demand and reach more customers, we have established a range of supplier partnerships that enable us to guarantee timely and quality product and service delivery.
Oil Marketing Companies (OMCs) are our primary clientele and we trade with more than 35 OMCs. Our customer base has increased by over 125% since our trading business commenced in 2020. Between 2020 and 2021, our sales volume for Gasoline increased by 495%. In the same year, Gasoil sales volume grew by 270% and Residual Fuel Oil (RFO) sales surged 52%. In 2021, RECL entered the premix market space and recorded a sales volume of 9,971 metric tonnes to end the business year. RECL recorded total revenue of $35,000,000 for the 2020-21 business year and aims to grow sales to $150,000,0000 over the next few years.
Premix is a mixture of fuel and other additives primarily used to power outboard motors on fishing boats. It is a blend of gasoline and marine mix (which is also a blend of locally purchased lubricants). The estimated consumption of premix in Ghana is at least eight million litres per month and RECL prides itself on being a critical player in the premix supply chain.
Fuel oil or residential fuel oil is popularly referred to as RFO and is a product of crude oil with many applications. RFO is used to power engines in sea vessels, produce electricity in thermal plants, and power machinery in the manufacturing industry.
Crude oil is typically refined to produce a wide range of valuable products for use across many industries. In West Africa, thermal power plants use crude oil in its unrefined state to produce electricity. Oil refineries also use it as feedstock to create desirable products such as gasoline, gasoil, LPG, fuel oil, naphtha, and jet fuel.
Gasoil is used by diesel powered engines as a source of energy and is derived from the crude refining process. Primarily dark in colour, its main specification indicators are cetane number and sulphur content. In Ghana, the acceptable sulphur content is 50ppm max. We guarantee our customers that the gasoil we distribute meets this quality requirement. The average monthly consumption of gas oil in Ghana is 150 million litres making it one of the country’s most highly consumed petroleum products. It is used to power heavy duty machines such as tractors, trucks, buses, and mining vehicles and is also used in the marine industry as marine gasoil in cases where fuel oil which meets the new IMO regulation is absent.
Gasoline is derived from crude oil and is used primarily to power compatible engines vehicles. It is called gasoline because of its tendency to vaporize and become gas easily. Gasoline composition specifications vary from country to country and in our primary market, Ghana, the significant determinants of quality gasoline are sulphur content and octane number. RECL supplies gasoline in line with the official requirements of a maximum 10ppm of sulphur and a minimum octane number of ninety-one.